Peak Bulletin 2024 – Issue 2
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Introduction
Black Friday is here, bringing a key opportunity to drive sales momentum ahead of the festive season. With more enthusiasm from consumers to bag sale offers and younger generations leading the way, the focus is on delivering competitive deals and a seamless online experiences — from browsing, to checkout and right up to the doorstep.
This week’s bulletin explores key trends, delivery performance insights, and strategies to capitalise on this pivotal retail event.
Retail & Consumer Pulse
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Younger Shoppers Lead the Way
This year, over two in five consumers (44%) plan to shop during Black Friday, but enthusiasm skews heavily towards younger generations. A striking 68% of shoppers under 30 intend to participate, compared to just 10% of those aged 60 and above. For retailers, this highlights the need to focus on seamless online experiences and competitive pricing strategies to capture the attention of younger audiences.
Q. What proportion of Black Friday shopping do you plan to do online this year?
Source: Retail Economics, n=2000
Key Trends To Watch:
Digital Dominance
Black Friday’s online roots continue to define the event, with 72% of shoppers planning to make most or all of their Black Friday purchases online. This shift underscores the importance of robust digital strategies, from mobile-friendly interfaces to smooth checkout processes.
Rising Median Spend
The median spend this year is expected to hover around £180, with younger shoppers (under-45s) leading the charge and spending just under £200 on average. Retailers should align offers with the preferences of these high-spending demographics to maximise sales.
Flexible Payment Options
Checkout flexibility is crucial for converting sales, with nearly a third (31%) of shoppers planning to use credit cards or buy now, pay later (BNPL) services. Offering diverse payment options can make the difference between a completed purchase and an abandoned cart.
Category Highlights
Despite cautious spending this year, Electricals and Clothing & Footwear are set to dominate shopping lists. Retailers in these categories have a vital opportunity to attract value-conscious buyers with competitive deals and exclusive offers.
Q. What types of products are you interested in purchasing during the Black Friday discounting period?
Source: Retail Economics, n=2000
Black Friday remains a golden opportunity for retailers to boost sales, particularly among younger, digitally savvy shoppers. By tailoring strategies to their habits and expectations, businesses can end the year on a high note, setting the stage for a successful festive season.
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Delivery Spotlight
A Strong Start to Peak 2024
The 2024 Peak season is off to a robust start, with parcel volumes surging by over 20% compared to Week 46. Weekend volumes have consistently grown over the last two weekends, and overall activity remains aligned with forecasts.
A key driver of this growth has been the early rollout of Black Friday promotions by many retailers, resulting in notable volume increases across all major sectors.
Despite Storm Bert bringing snow, severe weather and flooding, the wider network delivery performance remains resilient. While some areas faced significant challenges, carrier partners have maintained excellent service levels, ensuring minimal disruption for customers.
The outlook for the next two weeks is promising, with milder weather expected to support smooth operations and avoid broader delays.
As Black Friday and Cyber Monday hit their stride, significant uplift in volumes is anticipated this week as consumers use November pay packets to secure sales offers, marking a critical moment in the Peak season for retailers and carriers alike.
Pro Tips
- Maximise Weekend Performance: With parcel volumes already up 20%, ensure your operations are ready to handle the surge. Pro-active communication with carriers and real-time visibility of your delivery network will be key to staying ahead.
- Collaborate with Carriers / Carrier Partners: Strong performance from carriers has been a bright spot this season. Maintain close coordination to ensure service levels remain high as volumes peak.
- Be Weather-Ready: Storm Bert showed us the impact of severe weather on deliveries. Stay agile by monitoring weather forecasts and keeping customers informed about potential delays in affected areas.
Join the Conversation
“Partnering with GFS has transformed our logistics. With their multi-carrier sophistication, we’ve introduced weekend deliveries and gained the flexibility to switch carriers effortlessly. GFS simplifies everything with their efficiency through one contact, one relationship, one invoice, and one integration. Plus, they opened up new horizons with smooth international shipping options. Even onboarding just before Black Friday, we sailed through peak deliveries without a hitch. GFS’ reliability and efficiency have been game-changing for us!”
Sophie Kennett, Senior Operations Manager, Mahabis (ECA Footwear 21 Ltd)
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